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Competitors of MLL Hotels Group Report (Assessment)

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Updated: Jun 21st, 2019

Introduction

The MLL hotels are located in many parts of the world. Mallorca is one of the popular destinations of many travelers, and the MLL hotel chain has several hotels on the island. There are 2-, 3- and 4-star hotels (Welcome to MLL hotels in Majorca, 2015). It is possible to implement a SWOT analysis to identify competitiveness of the company. The following hotels will be analyzed: Sahara, Nubia, Gobi (2 stars), Palma Bay Resort (3 stars), Caribbean Bay (3 stars), Blue Bay (3 stars) and Mediterranean Bay (4 stars).

MLL and Its Competitors

Hotel Stars Rooms Facilities Price
Sahara-Nubia-Gobi Bay 2 131 Near the beach
1 restaurant + 5 bars
4 outdoor pools
Wi-Fi in the lobby
Air conditioning
Free supervised activities for children
Garden, convenience store
Daily housekeeping
From $26
Blue Bay 3 112 500m from the beach (a free minibus to the beach)
1 restaurant
1 outdoor pool
1 outdoor children’s pool
Conference rooms
1 lounge bar
1 pool bar
Daily housekeeping
From $27
Caribbean Bay 3 230 Near the beach
1 restaurant + 1 bar/lobby
2 outdoor pools
Wi-Fi (for a fee)
Air conditioning
Daily housekeeping
From $26
Hotel Blue Sea Arenal Tower 3 152 Near the beach
2 outdoor pools
1 restaurant
1 snack bar
Games room
Wi-Fi (free in reception)
Air conditioning
Daily housekeeping
From $22
Amazonas 3 154 Near the beach
1 outdoor pool
1 children’s pool
A poolside bar
1 restaurant
1 buffet
TV lounge
Air conditioning
Daily housekeeping
From $16
Palma Bay Club Resort 3 500 Quite far from the beach
Near the shopping/leisure area
4 outdoor pools
Children’s playground
Gardens
Adult and children’s entertainment
Wi-Fi (for a fee)
Solarium terrace
Air conditioning
Daily housekeeping
From $26
Encant Hotel 3 130 Near the beach
1 outdoor pool
1 restaurant
1 Bar/lounge
Wi-Fi (free)
Air conditioning
Daily housekeeping
$48
Dunas Blancas 3 167 Near the beach
1 restaurant
1 outdoor pool
1 bar/lounge
Wi-Fi (for a fee)
Air conditioning
Daily housekeeping
From $53
Fergus Gemini 3 193 Near the beach
1 restaurant
1 bar/lounge
1 outdoor pool
Wi-Fi (free)
Air conditioning
Daily housekeeping
From $50
Hotel Riutort 3 195 Near the beach
1 outdoor pool
Sauna
Terraces solarium
1 restaurant
1 bar
Air conditioning
Daily housekeeping
From $45
Hotel Alejandria 3 221 Near the beach
1 outdoor pool
1 restaurant
1 bar/lounge
Wi-Fi (free)
Air conditioning
Daily housekeeping
$47
Mediterranean Bay 4 105 Near the beach
Adults-only hotel
10-minute drive to Palma
Outdoor pool
Lounge bar
Jacuzzi, Sauna, solarium terrace
Show cooking restaurant
Wi-Fi (free)
Daily housekeeping
From $42
Torre Azul 4 133 Near the beach
Air conditioning
Wi-Fi (free)
Free shuttle to the beach
Spa
2 lounges / bar
1 buffet show cooking restaurant
1 snack bar
Terrace
Daily housekeeping
From $43

A Brief Competitors Analysis

The MLL Hotels Company in Mallorca has a number of competitors. The direct competitors of Carribean Bay Hotel are Hotel Blue Sea Arenal Tower and Amazonas Hotel. The direct competitors of the Palma Bay Club Resort Hotel are Encant Hotel, Dunas Blancas, Fergus Gemini, Hotel Riutort and Hotel Alejandria. The direct competitors of Mediterranean Bay are Torre Azul. It is noteworthy that Sahara-Nubia-Gobi Bay and Blue Bay do not have direct competitors.

It is possible to analyze competitors’ objectives, assumptions, strategy, and capabilities. Their strategy includes the focus on sustainability. It is noteworthy that hotels seem to focus on the development and diversification. They provide the visitors with a variety of services including conference and meeting rooms.

It has been acknowledged that this area is one of the most promising as more and more clients need an appropriate place for holding meetings in different locations (Buswell, 2011). At the same time, some hotels concentrate on availability. For instance, Roc Hotels chain aims to provide high-quality services at best prices.

Competitors’ Capabilities: SWOT Analysis

To understand the prospects of the MLL hotel chain and the way it should develop, it is possible to implement a SWOT analysis.

Strengths
  • Direct Competitors
  • Diversification
  • Location
  • Facilities and services
  • Prices
Weaknesses
  • Location
  • No Facilities for Conferences
  • No Free Access to Wi-Fi
  • No free entertainment
Opportunities
  • Wi-Fi
  • Meeting Rooms
  • Increased Number of Travelers
  • Airlines
  • Technology
Threats
  • Competition General
  • Terroristic Threat
  • Competition (price)

Strengths

  • Direct Competitors: Sahara-Nubia-Gobi Bay and Blue Bay Hotel do not have direct competitors, which is a significant competitive advantage.
  • Diversification: One of the strengths of the hotel chain in question is its considerable diversification. Thus, the company includes 2-, 3- and 4-star hotels. Therefore, it has minimized risks associated with customers’ needs and opportunities. Notably, the contemporary financial constraints in many countries including the EU and the USA, as well as many other states, may soon result in the decrease in visitors in hotels of all ratings.
  • Location: The MLL hotels are located near the beach, which is very important for Mallorca. This destination is mostly associated with S&S vacation. Thus, visitors want to have an easy access to the beach. When it comes to the hotel chain’s competitors, 4- star hotels are also located near the beach or on the beach. However, when it comes to the 3-star hotels, they are often situated quite far from the beach. Clearly, this makes the facilities less attractive. Clearly, MLL hotels have a significant competitive advantage as regards their location. At that, Palma Bay Club Resort Hotel has the worst location among other facilities of the chain.
  • Facilities and services: MLL hotels provide services that correspond to their rating. At that, Sahara-Nubia-Gobi Bay (2 stars) has several pools and bars, which is not typical of a 2-star hotel. It also provides services that can be valuable for the visitors such as children’s entertainment.
  • Prices: The prices at MLL hotels are quite low, which is another competitive advantage. The competitors have higher prices and, in many cases, fewer services provided. Hence, travelers may choose MLL hotels for their prices, quality and services provided. The company pays specific attention to the quality of services, and it tries to ensure maximum value for the visitor money.

Weaknesses

Nonetheless, the MLL hotels are also characterized by a number of weaknesses.

  • Location: The Palma Bay Club Resort Hotel is situated rather far from the beach while its direct competitors have a more favorable location.
  • No Facilities for Conferences: One of the major weaknesses is the lack of space for conferences and meetings. As has been mentioned above, this area is seen as one of the most popular segments (Buswell, 2011). Only Blue Bay (a 3-star hotel) has a conference room. However, even a 4-star hotel does not provide such a space for its visitors. There are no conference or meeting rooms. Therefore, the company loses potential clients. These are companies that want to have a meeting or conference and provide certain kind of encouragement to their employees. Clearly, provision of services to such clients is beneficial as more visitors stay in the hotel.
  • No Free Access to Wi-Fi: The majority of the hotels of the chain (except for the 4-star Mediterranean Bay) do not provide free access to Wi-Fi, which is rather unclear. This service does not require considerable investment. At the same time, the modern travelers are accustomed to being online 24/7.
  • No free entertainment: The vast majority of the MLL hotels in Mallorca do not provide free entertainment to its visitors. This can be seen as a disadvantage especially when it comes to children’s entertainment. Families come to the island, and they want to have an unforgettable experience, which they can fail to have if they simply stay on the beach. It is noteworthy that many competitors also lack entertainment. Therefore, the development of some entertainment can become one of the important competitive advantages of the MLL.

Opportunities

It is necessary to note that the company has a number of opportunities to develop and enhance its competitive advantage.

  • Wi-Fi: The MLL hotels may provide a wider range of services. For example, Wi-Fi should be available and free of charge in all the hotels of the chain in Mallorca. Visitors should be able to use their devices to the fullest when they are staying at MLL hotels irrespective of the number of stars. It is important to remember that young adults and adults are heavy users of technology, and they should have an opportunity to remain connected when they are on their vacation.
  • Meeting Rooms: The company should consider providing meeting rooms in the vast majority of facilities. These can be spaces of different dimensions and styles. The area for meetings and conferences can be different as all companies have their own vision of an effective meeting. This will require additional funds. However, this may attract more visitors. At that, it is necessary to remember that the company should consider the most appropriate locations as there is no need to provide such areas in all 2-star hotels. Location and costs can be key elements to take into account.
  • Increased Number of Travelers: it is necessary to note that the major trend characterizing the contemporary globalized world is people’s desire to travel and explore. Modern travelers like S&S vacations while many people love to explore and find beautiful natural spots (Buswell, 2011). Mallorca is associated with these two wants and desires. Therefore, people will continue visiting the island, and will potentially stay at MLL hotels. It is possible to offer services associated with exploring the island. For example, tours to the most picturesque parts of Mallorca can be developed. This can be held as a transfer to some spots with or without further guiding.
  • Airlines: Importantly, the highly competitive market of airlines creates new opportunities for the hospitality industry. Airlines try to attract new customers through lowering down prices and flying to new destinations. More affordable tickets are beneficial for the hospitality industry, especially on islands (including Mallorca).
  • Technology: The development of technology (and especially the digital space) provides a variety of opportunities for marketing. The MLL hotel chain can use social networks as an advertising platform. Information about hotels and services provided can be easily spread online and reach millions of potential visitors and loyal customers.

Threats

Finally, there are certain threats that can undermine the development of MLL hotels and the entire industry.

  • Competition General: The threat of the new entry is quite serious. Buswell (2011) notes that family-owned small hotels and rural hotels are acquiring considerable popularity among modern travelers. These facilities provide high-quality services, special atmosphere, and low prices. It can be difficult for hotel chains to remain competitive. The Sahara-Nubia-Gobi Bay and Blue Bay can lose their competitive advantage or look for new ways to win visitors if other hotels are established in the area.
  • Terroristic Threat: Another significant threat is the recent situation in some of the popular resorts where Europeans tend to spend their vacations. Clearly, Spain is a country that does not participate in various military activities. However, there are still chances that terrorists will try to attack in such a popular touristic destination. It is necessary to add that the terroristic attacks in Egypt and Mali can be a threat as well as the opportunity for Mallorca touristic facilities. Thus, travelers will consider going to a safer Mallorca rather than Mali or Egypt. However, the government and officials should ensure the safety of the travelers.
  • Competition (price): The Caribbean Bay Hotel has higher costs compared to its direct competitors.

Conclusion

In conclusion, it is possible to note that the MLL hotels can remain competitive as they have many strengths, and there are various opportunities. The hotel chain in question is diversified and has 2-, 3- and 4-star hotels on the island. The MLL hotels provide high-quality services at quite low prices.

However, the hotels are also associated with some weaknesses, and there are a number of threats. For instance, there should be more diverse services. Recent terroristic attacks have shown that all countries should enhance safety measures to be able to protect citizens and travelers. At that, the MLL hotels in Mallorca have high chances to develop and remain competitive.

Reference List

Buswell, R.J. (2011). Mallorca and tourism: History, Economy and Environment. Buffalo, NY: Channel View Publications.

Welcome to MLL hotels in Majorca. (2015). Web.

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